And appraisal. Best part is that I am only using about 1/3 of the down payment that I had set up. So plenty of money there for closing and moving expenses.
Buying a home
- Thread starter sirkickyass
- Start date
And appraisal. Best part is that I am only using about 1/3 of the down payment that I had set up. So plenty of money there for closing and moving expenses.
To be honest, I think the appraisal game is sort of rigged. Everyone is just making educated guesses and the appraiser doesn't get any extra cheese for causing problems by saying the house is worth $8,000 less than the offer on it. As long as the offer is reasonable, the appraiser just rubber stamps the offer amount.
J
JAZZGASM
Guest
I always thought the appraiser should not have access to the purchase price. Then you will know if the appraisal is fair.
I figured as much, just hoping for everything to be smooth and easy. Meeting with my finance guy today to get the funding in order. Already starting to touch up the house I am in. I was care taker for a good friend of mine and making sure everything is in working order.
I like that.
Nice in theory, would probably cause more problems than it is worth.
Example A: Offer on house is $200,000 parties agree. Appraiser comes back and says house is worth $193,000. Causes financing problems because now the house isn't "worth" the loan the bank agreed to finance. Buyer demands price concession to appease lender. Seller loses $7,000 even though the buyer was willing to pay more and the whole process is mucked up and slowed down over 3.5% of the price. Feel-bad for seller, hassle for buyer.
Example B: Offer on house is $200,000 parties agree. Appraiser comes back and says house is worth $207,000. Buyer thrilled. Seller feels cheated. Should he try and back out of the deal? If he does, Buyer is pissed and wishes he hadn't appraised in the first place. If he doesn't seller feels screwed even though they were previously willing to sell for $200k without a hitch. Feel bad for seller, potential deal breaker, potential hassle for buyer.
Example C: Offer on house is $200,000 parties agree. Appraiser comes back and says house is worth $200.000. Everyone is happy.
J
JAZZGASM
Guest
Well the problem is bank mortgages are non-recourse to the buyer, meaning only the home in collateral. So the bank will only make a loan based on the appraised value, not the value anyone is willing to pay.
If I made an all cash offer on a home I would skip the appraisal.
Miggs
Well-Known Member
Yeah, I understand.
Well this has finally happened, because it takes forever to buy a home. But it was all worth it.
Well this has finally happened, because it takes forever to buy a home. But it was all worth it.
Right on Kicky. I move into my place this Wednesday. Closed early and for 2k cheaper than I thought.
